The Week Ahead: US GDP, Schroders and LSE results

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This week is full of companies’ results including asset managers such as Schroders, housebuilder Persimmon and TV network ITV. In the meantime, the House of Lords will meet to discuss the Article 50 bill in its Committee stage starting on Monday.

Fund Strategy looks at some key events shaping the week and what to expect.

Monday 27 January

  • CBI Quarterly Service Sector Survey
  • House of Lords – Article 50 bill (Committee stage)

Tuesday 28 January

  • Persimmon (Q4 results)

The Share Centre investment research analyst Graham Spooner says: “The company has already provided some of the core numbers relating to 2016 in their latest update where revenues rose to £3.14bn led by a rise in completions and average selling prices. Focus in the full year results will be on operational efficiency and how rising costs of labour and materials has impacted the earnings.

“Investors will also focus on the forward sales and management prospects for the year given the uncertainties in consumer confidence due to Brexit. Commentary on whether housebuilders are willing to develop their land band quicker will also be interesting to see.”

  • France – GDP Q4 (final)
  • US GDP figures – Q4 (second estimate)

Wednesday 1 March

  • Admiral Group – results
  • Bank of Canada – interest rate announcement
  • China – manufacturing purchasing managers index
  • ITV (Q4 results)

Spooner says: “Results have demonstrated that the business is continuing to move in the right direction. Analysts are encouraged by the improvement at its Studios business, with a significant increase in new commissions and its digital offering.

“There have even been suggestions that the group could be a bid target. However, there has been pressure on advertising revenue since Brexit and investors will be hoping for signs of an improvement in this area.”

Thursday 2 March

  • Schroders results
  • EU Unemployment Statistics
  • Euro area inflation – flash estimate

Spooner says: “The flash EU inflation data is released 10 to 14 days or so before inflation data covering the US and UK, so it gives a good early indication. Last month, inflation in the EU area rose to 1.8 per cent, from 1.1 per cent in December.

“The euro area data turned out to be typical. With cost pressures growing, did the region see another big jump in inflation in February? If so, the UK and US will probably follow.”

Friday 3 March

  • Italy – Q4 GDP (final)
  • London Stock Exchange Group – results